BUZZ-FMC shares sink on lower quarterly revenue forecast

Update

Agrichemicals firm FMC's FMC.N shares sink 34% to $35.64

FMC posted Q4 2024 profit of $1.79 cents per share after the markets closed on Tuesday, compared with analysts' average estimate of $1.6 cents per share - data compiled by LSEG

But it forecast Q1 2025 revenue below Wall Street estimates

"Another year of inventory destocking will lead to lower sales and profit growth and reduced free cash flow generation. Management's guidance for free cash flow generation is less than its dividend payment. This puts the dividend at risk should sales and profits come in below guidance" - Morningstar analyst Seth Goldstein

Brokerage cuts PT on FMC to $95 from $110

Morgan Stanley cuts PT to $46 from $70 on "ongoing financial performance challenges, execution risk associated with the new strategy and elevated debt leverage"

Bank of America cuts PT to $48 from $61 and downgrades stock to "underperform" from "neutral"

Says "earnings release highlighted additional broader and company-specific challenges which in our view raise FMC's risk profile substantially"

FMC is down 28% YTD